Note: Descriptions are shown in the official language in which they were submitted.
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AUTOMATIC ORDERING METHOD AND SYSTEM FOR TRADING OF STOCKS,
BONDS, ITEMS, FUTURES, OPTIONS, INDEXES, CURRENCIES AND THE LIKE
BACKGROUND OF THE INVENTION
FIELD OF THE INVENTION
The present invention relates to an automatic ordering method and
system for trading of stocks, bonds, items, futures, options, indexes, foreign
currencies through data communication network, and more particularly to an
automatic ordering method and system by way of computer according to a
predetermined condition set by an investor.
Known are the method and system for trading articles such as stocks,
foreign exchanges, cereals, ores, futures and the like. In the conventional
method and system, an investor inputs into a computer desired purchase (or
selling) price and desired purchase (or selling) quantity of certain articles,
securities, foreign exchanges or indexes to generate a trade order and to
conclude a trade. In this regard, trade method of articles, foreign currency
exchanges, securities, indexes and the like through a computer network is the
same as the current stock trade method through a computer network, such
that the present invention will be described hereinafter with reference to a
stock trade by way of exampie.
With reference to the stock trade as an example, the present invention
relates to a method and a system, where a user pre-set a trade condition for
purchase or selling order for a particular stock, and a computer places an
automatic purchase or selling order according to the trade condition.
It has been a general practice for a stock holder to directly order a
selling or buying of a stock at a securities company or to commission an
employee at a securities company to order a selling or buying of a stock under
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, , ..
his or her own decision. When a stock holder intends to order a selling or
buying of stock, he or she visits a securities company in person, calls the
company, uses a radio communication terminal provided by the company,
utilizes a personal computer communication network system or uses an
internet.
Now, recent stock trade method at a stock exchange market (SEM) and
some of the terminologies in relation to stock trade are briefly described
using the example of Korea Stock Exchange (KSE).
As of February 1999, a stock price is based on a closing of a previous
day and can rise or fall within a range of 15 /p thereof. The KSE opens at 9
in
the morning during workdays except for holidays, weekend and yearend, and
closes at 3 in the afternoon. A "daily upper limit" in the stock dealing means
a
price 15~Jo soared above the closing price of the previous day and a "daily
lower limit" defines a price 15% declined based on.the closing price of the
previous day.
Purchase and sale of a stock are made from 9 a.m. when the stock
market opens to 3 p.m., but orders for stock dealing can be reserved even
from 5 p.m. to before 9 a.m. the following day after the market is closed in
case a communication by computer, ARS, Internet and the like are utilized.
A buying and selling method of stocks after
order thereto is given utilizing the communication by computer or Internet is
described hereinafter.
A stock holder uses his or her computer system to connect same to
a computer system of a securities company the stock holder deals with, and
to confirm a balance of an account, residual quantity of stocks, present price
or closing price of his or her present stock. Then when the stock holder
orders
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a buying or a seiling of a particuiar stock, the order is recorded in the
computer system of the securities company, which is then transferred to a
computer system of the KSE after a usual procedure necessary for the sale
and purchase of the stock dealings is processed in the securities company.
When the order of sale and purchase is received via a network from
the securities company, the computer system in the KSE compares selling
order price and quantity and buying order price and quantity and allows a
purchase and sale to be concluded at a particular price.
Generally, this kind of buying and selling is repeated from opening to
closing of the stock market. This kind of method is similarly performed when
the stock holder visits the securities company. Only difference is that a step
is
deleted where a stock holder utilizes his or her computer system to input a
particular data.
In order to contract this kind of deals, whether the deal is a purchase
order or a sale order, an item code of a stock to be bought or sold, desired
purchasing or selling price, desired purchasing or selling quantity and the
like
should be input via a computer or ARS by a stock holder or a staff at the
securities company.
Under the stock. dealing method thus described, a predetermined
fundamental information data (by way of example, stock account, secret
number, etc) and buying/selling condition information data (by way of
example, stock item code, desired buying/selling prices, desired
buying/selling quantity, etc) should be input via the computer system or
by a stock holder or staff at the securities company at every dealing time
point. Furthermore, in order to place a buying or selling order corresponding
to a particular purchase or sale, buying or selling contract details at every
moment should be monitored and an order corresponding thereto should be
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timely placed.
However, there is a problem in these types of behaviors in that lots of
time are consumed and people who are busy at offices and who can hardly
spend time at securities company cannot cope therewith.
There is another problem in that staff at the securities company spend
too much time in placing every buying or selling order, in the view point of
the
securities company, too much personal expenses are spent, and if there is any
erroneous input of necessary information data due to erroneous typing and
the like, the securities company is compelled to sustain a large amount of
economic loss.
Meanwhile, many stock investors are thinking about provisional desired
purchase price, purchase quantity, desired selling price and selling quantity
of
particular stock in which they intend to invest. However, in order to
comprehend whether the current price of the stock has reached a desired
purchase or selling price, they should be always aware of the stock price
change at the stock market. However, it is not that easy to constantly observe
the changing stock prices.
SUMMARY OF THE INVENTION
The present invention is disclosed to solve the aforementioned
problems and it is an object of the present invention to provide an automatic
ordering method and system for allowing an investor to invest without
concerning himself or herself about stock market change and new information.
The present invention also provide an automatic ordering method and
system adapted to repeatedly place purchase and selling orders according to
predetermined conditions on behalf of investors including individual investors
and institutional investors.
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According to an aspect of the invention, there is
provided an automatic ordering method for trading any of
stocks, bonds, items, futures, options, indexes, foreign
currencies and combinations thereof using a computer system
connected to a data communication network, comprising: (a)
receiving at a user interface a selection of user selecting
a trade-desired object and an initial trade condition for
selling or purchasing the selected object at the computer
system and storing the initial mode condition in a trade
condition control module, the initial trade condition
including a price for selling or purchasing and a trade-
desired quantity; (b) receiving a user inputted automatic
trade condition containing purchase and selling conditions
in the computer system and storing the automatic trade
condition in the trade condition control module, the
automatic trade condition comprising conditions for deciding
a selling price, a selling quantity, a purchase price and a
purchase quantity for subsequent orders; (c) receiving, at
the computer system through the data communication network a
user placed initial trade order according to the initial
trade condition; (d) a trade order control module the
computer system, without an intervention by the user,
generating and placing a purchase order and a selling order
for trade according to the automatic trade condition
immediately after the initial trade order has been
contracted; (e) immediately after one of the selling order
and the purchase order is contracted, the trade order
control module of the computer system, without an
intervention by the user, generating and placing another
purchase order and another selling order for trade according
to the automatic trade condition; and (f) the trade order
control module repeating the process (e); wherein the
selling order in each of the processes (d) and (e) is higher
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than the contracted price in each of the processes (d) and
(e), and the purchase order price in each of the processes
(d) and (e) is lower than the contracted price in each of
the processes (d) and (e).
According to a further aspect, there is provided
an automatic ordering method for trading of securities using
a computer system connected to a data communication network,
comprising: (a) receiving, in a trade condition control
module of the computer system a user selection of at least
one of the securities to be traded and storing an initial
trade condition and an automatic trade condition containing
purchase and selling conditions, the automatic trade
condition determining a selling price, a selling quantity, a
purchase price and a purchase quantity in every order
subsequently generated; (b) a trade order control module of
the computer system placing an initial order for purchase or
sell according to the initial trade condition through the
data communication network; (c) immediately after the
initial order is contracted, the trade order control module
automatically, without an intervention by the user,
generating and placing both a new sell order and a new
purchase order through the data communication network
according to the automatic trade condition, the new sell
order being at a price higher than the contracted price for
the initial order and the new purchase order being at a
price lower than the contracted price for the initial order;
(d) immediately after one of the new sell order and the new
purchase order is contracted, the trade order control module
automatically, without an intervention by the user,
generating and placing another purchase order and another
sell order for trade according to the automatic trade
condition, the another sell order being at a price higher
than the previously contracted price and the another
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purchase order being at a price lower than the previously
contracted price; and (e) the computer system repeating the
process (d).
According to another aspect, there is provided an
automatic ordering system of stocks, the system including a
user computer system connectable to a computer system at a
stock exchange through a data communication network, the
system comprising: a user interface at the user computer
system for the user to input an automatic trade condition; a
memory device for storing basic information data including
an item code of a stock and an account number of a stock
holder input to the computer system through the user
interface; a trade condition control module for storing an
automatic stock trade condition based on a selling order
including price and quantity and a purchase order including
price and quantity for trade of the stock; and a trade order
control module for determining whether the automatic stock
trade condition has been met and for placing a stock trade
order according to the automatic stock trade condition at a
new price through the data communication network if the
condition is met, wherein through the data communication
network, the trade order control module places repeatedly,
without an intervention by the user, a new stock selling and
a new purchase order according to the automatic trade
condition immediately after the stock selling or purchase
order is contracted at a contracted price, the new selling
order has a price higher than the contracted price, and the
new purchase order has a price lower than the contracted
price.
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In accordance with one object of the present invention there is
provided an automatic ordering method, the automatic ordering method for
trading of stocks, bonds, items, futures, options, indexes, foreign currencies
and the like through data communication network comprises the steps of:
determining a trade-desired object and inputting an automatic trade
condition containing purchase and selling conditions in a computer system;
issuing purchase and/or selling order(s) according to the automatic
trade conditions through the data communication network;
discriminating whether the purchase order and/or selling order has
been contracted through the data communication network; and
placing new purchase and/or selling order(s) by the computer through
the data communication network according to the automatic trade conditions
when either the purchase order or the selling order is contracted.
In accordance with another object of the present invention, there is
provided an automatic stock ordering method using a computer system
connected to a data communication network, the method comprising the
steps of:
determining a trade-desired stock and inputting an automatic trade
condition including purchase and selling conditions at the computer system;
placing through the data communication network a stock purchase
order or stock selling order according to the trade condition;
discriminating whether or not the stock selling order or stock purchase
order has been contracted through the data communication network; and
placing by a commuter through the data communication network a
new stock selling or purchase order according to the automatic trade
condition when the stock selling or purchase order is contracted.
In accordance with still another object of the present invention, there
is provided an automatic stock ordering method, the method of trading stocks
using a computer system connected to data communication network, the
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method comprising the steps of:
determining a trade-desired stock and inputting an automatic trade
condition including a purchase condition and a selling condition in the
computer system;
placing through the data communication network one or more than
one stock selling order(s) and one or more than one stock purchase order(s)
according to the trade condition;
discriminating whether or not the stock selling or purchase order has
been contracted through the data communication network; and
placing by the computer through the data communication network new
stock selling and purchase orders according to the automatic stock trade
condition when the stock selling or purchase order is contracted.
In accordance with still further object of the present invention, there is
provided an automatic ordering system of stocks, the stock ordering system
including a user computer system connectable to a computer system at the
Korea Stock Exchange through a data communication network, the system
comprising:
a user interface at the user computer system;
a memory device for storing a basic information data including item
code of stock and account number of a stock holder input to the computer
system through the user interface;
a trade condition control module for storing automatic stock trade
condition data containing desired selling price, desired selling quantity,
desired purchase price, desired purchase quantity for trade of the stock input
to the computer system through the user interface; and
a trade order control module for discriminating whether the automatic
stock trade condition has been met and for placing a stock trade order
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according to the automatic stock trade condition through the data
communication network if the condition is met.
BRIEF DESCRIPTION OF THE DRAWINGS
For fuller understanding of the nature and objects of the invention,
reference should be made to the following detailed description taken in
conjunction with the accompanying drawings in which:
Figure 1 is a conceptual drawing of a stock dealing system via a
network;
Figure 2 is a conceptual block diagram for illustrating an embodiment
of an automatic ordering system of stock dealings according to the present
invention;
Figure 3 is a flow chart for illustrating the first and the second
embodiments of an automatic ordering method of stock dealings according to
the present invention;
Figure 4 is a user interface for illustrating the first and the second
embodiments of an automatic ordering method of stock dealings according to
the present invention;
Figure 5 is a flow chart for illustrating the third and the fourth
embodiments of an automatic ordering method and system of stock dealings
according to the present invention;
Figure 6 is a user interface for illustrating the third and the fourth
embodiments of an automatic ordering method and system of stock dealings
according to the present invention; and
Figure 7 is an automatic trade table generated by the third and the
fourth embodiments according to the present invention.
DETAILED DESCRIPTION OF THE INVENTION
Preferred embodiments of the present invention will now be described
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in detail with reference to the accompanying drawings.
Figure 2 is a conceptual block diagram for illustrating a first
embodiment of an automatic ordering system of stock dealings or stock trade
according to the present invention.
In other words, an automatic ordering system of stock dealing
according to the present invention (hereinafter referred to an "automatic
ordering system") can be embodied, as illustrated in Figure 1, by user
computer system 10 (hereinafter referred to as "user `s computer"), a
computer system of securities company 20 and a computer system of SEM
30 mutually connected for performing data communication via a network 40.
Furthermore, the user computer 10, where an automatic ordering
system according to the present invention can be embodied, includes a user
interface 12 for interfacing with a stock holder, a trade (deal) condition
control
module 16 for storing information on a stock holder (by way of example,
name, quantity, and purchasing price of possessed stock, and available
balance and automatic trade conditions established by the stock holder and
for revising to a new stock dealing condition according to user manipulation
or
concluded deal state, and a trade order control module 14 for issuing a
dealing order of concerned stock according to the automatic trade conditions.
Of course, the user computer 10, although not illustrated in Figure 2,
further includes softwares such as operation system necessary for operation
of the computer system and various applications and hardwares such as
central processing unit and hard disks. The user computer still further
includes hardwares (not shown) such as a modem, a LAN adapter for
executing a data communication with the computer system 20 at a securities
company or with the computer system 30 at the SEM and softwares such as
data communication control application and the like, and all these are
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generally called as a communication control module (not shown).
The computer system 20 at the securities company, connected to the
user computer 10 via the network 40 in order to perform a data
communication, includes an administrator's interface 22 for interfacing with
an administrator of the securities company, a deal (trade) performing module
24 for receiving an order from the user computer 10 and transmitting same to
the computer system 30 at SEM to thereby allow a stock dealing to be
concluded, and an account control module 26 for storing a useable balance
and stock residual quantity of stock account of a particular stock holder and
for amending same according to contracted dealings.
It should be also noted that the computer system 20 at the securities
company is further disposed with hardwares and softwares for executing a
general function as a computer system, quite similar to those of the user
computer 10.
Part or whole of modules 14 and 16 of the user computer 10 may be
integrated to a computer system 20 of a securities company. Construction
may be made such that a user is simply connected to a company of a
securities company through the user interface 12. Furthermore, in a country
where it is legally allowed for a user to directly connect to a computer
system
30 of a stock market in placing a stock trade order, the computer system 20
of a securities company may be integrated to the user computer 10.
In case a securities company invests in a stock on behalf of a client,
hardward and software resources of the user computer 10 are integrated to
the computer system 20 of the securities company.
Next, the computer system 30 at the SEM is provided with an
administrator interface 32 for interfacing an administrator of the SEM, a deal
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(trade) conclusion control module 34 for receiving and comparing a purchase
order and a selling order from each computer system 20 at every securities
company to thereafter conclude the dealings and a stock price control module
36 for correcting the stock price according to the concluded stock quantity
and price. The computer system 30 at the SEM further includes softwares and
hardwares for performing a general function as a computer system, quite
similar to those of the user computer 10 or computer system 20 at the
securities company.
Each module illustrated in Figure 2 performs a mutual data
communication within a computer system each module belongs to, and a data
communication is executed via the data communication control module even
among the modules included in other computer systems. Data flow and
connecting relation according to performance of these data communication
are schematically illustrated by two-way arrows in Figure 2. Although Figure 2
illustrates a block diagram where the user computer 10 is directly connected
to the computer system 30 of the SEM, it should be noted that the direct
connection is not indispensable but the user computer 10 may be connected
only to the computer system 20 of the securities company. Hardwares and
softwares for accomplishing the data communication are well known to a
person who has ordinary knowledge in a technical field to which the present
invention belongs (hereinafter referred to as "a person skilled in the art"),
and
detailed description of the hardwares and softwares will not be made here as
they are not directly necessary matters in describing subject matters of the
present invention.
It is an easy matter for a person in the art to adequately arrange or
change computer system resources between the user computer 10, computer
system 20 of a securities company and computer system 30 of KSE.
Accordingly, it should be noted that Figure 2 is just shown for illustrating
one
embodiment and a system for embodying the present invention may be
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variably modified by a person in the art.
Next, embodiments of the automatic stock ordering method and
system will be described in detail with reference to Figures 3, 4, 5, 6 and 7.
Figure 3 is a flow chart for illustrating a first embodiment of
automatic ordering method according to the present invention.
According to the first embodiment, when the automatic ordering
system starts operation, step 300, a basic data including a stock account
number, a secret number thereof, name and registration number of stock
holder, item code of possessed stock and the like are registered through the
user interface 12 of the user computer 10 and are stored. A one-time
registration of the basic information data suffices at the initial start of
the
automatic ordering system and there is no need of additional registration
unless the basic information data is to be amended.
Next, the stock holder establishes an automatic trade condition for
selling and purchasing certain items of stocks, step 302. A user interface as
shown in Figure 4 may be provided to the user to expedite the establishment
of the automatic trade condition.
A item code selection button 401 in Figure 4 is selectively provided to
search or select a share to invest in. In order to select a stock of ABC
company 403 as investment item, an item code of the ABC company 403, by
way of example, `00660' 402 may be selected or input. A referral button 404
of share price of previous day may be selectively provided. An amount to be
used for automatic trade is entered in an amount entry column 405. The entry
amount should not necessarily accord with remainder in the stock account.
When there remains possessed stocks to be automatically traded, the number
of stocks to be automatically traded are entered in a column 406. The number
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of stocks entered into the column 406 should not be necessarily the whole
possessed stocks.
Establishment of initial trade condition is not part of the present
invention. The initial trade condition is the same as the method and system
provided for cyber stock investors by the current securities companies. A
referral button 407 of current share price is a selective item.
Column 408 is a button for selecting purchase or selling. The present
example has established an initial trade where 100 shares 410 of ABC
company are purchased 408 at 25,000 Korean Won per share.
The automatic trade condition is based on a presumption that an
initial trade will be contracted. In order to set up an automatic trade
condition,
columns 412 and 422 for selecting selling or purchase, columns 414, 418,
424 and 428 for selecting unit price and quantity at fixed quantity or fixed
rate, and columns 416, 420, 426 and 430 for entering the unit price or
quantity at fixed quantity or fixed rate are provided.
The present example as a first automatic trade condition has
established a selling 412 of 100 shares 420 purchased at the initial trade at
27,000Won per share.
A second automatic trade condition based on the contract of the first
condition is established at purchase 422 more increased in quantity 428 and
430 by 200% and lower unit prices 424 and 426 by 20% than those of the
first trade. In other words, the condition is buying 200 stocks at 21,600Won
per share.
These kinds of automatic trade conditions may be established up to
an appropriate number, by way of example, up to a fifth condition or up to a
tenth condition, in the same method. The automatic trade condition is
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confirmed by pressing a confirmation button 432. However, the automatic
trade condition is allowed to be changed or amended at all times by a user.
A selling order according to the predetermined first condition is
generated by computer regardless of the current share price right after the
initial trade is contracted. In other words, a discrimination is made at step
306 in Figure 3 as to whether the automatic trade condition is a purchase or a
selling, and if the condition is established as selling as illustrated in
Figure 4,
flow advances to step 310 to discriminate whether the selling condition has
been met. The discrimination of the selling condition is a discrimination as
to
whether established selling quantity of share is possessed, or whether a
designated selling price is within an allowable trade range (i.e., daily upper
limit and daily lower limit).
If the condition is met, a selling order is automatically generated by
computer, step 316, and the computer discriminates whether the selling order
is contracted, step 318.
If the selling order is not contracted on the same day, same order is
generated by computer every day until the selling order is concluded. If the
order is contracted, the account remainder and share residual quantity are
amended, step 320, and the computer discriminates whether or not the
condition is met according to the previously set-up second automatic trade
condition. If the second condition is met, a new order is immediately
generated. In other words, as soon as the first a trade is concluded, a second
trade order is actually created. A stock trade order is automatically
generated
by the computer as much as the automatic trade condition is established
according to this method. When the established automatic trade conditions
are all concluded, automatic trade is stopped. In the present invention,
completion of the automatic trade is advised to a user by an appropriate
method. This method may include beeper, E-mail, cellular telephone or the
like.
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This notifying method can be realized by well=know technologies.
The first embodiment includes a step 304 for receiving the closing
price of previous day and a step 312 for notifying an error when the purchase
or selling condition is not met at steps 308 and 310.
A discrimination should be made as to whether established trade price
is within the daily upper limit or daily lower limit when the stock trade
order is
placed only within the limits as in Korea, and if the order is placed out of
the
limits, errors 312 are created. Furthermore, in case only partial quantity of
trade order is concluded, or trade is fulfilled at a price different from
trade
order price (Handling of this case will be described later), an instance can
occur where account remainder and stock residual quantity remain against
anticipation to thereby generate an error.
If an error happens, the automatic trade is stopped and generation of
error is advised to a user by an appropriate method. When the error is
notified,
the user may change or amend the automatic trade condition to thereafter
process the automatic trade continuously.
According to the first embodiment, it is possible for the user to
perform the trade of shares as desired without continuously monitoring
changes of the stock market.
Step 304 in Figure 3 at the second embodiment of the present
invention includes a step for receiving the closing price of the previous day
and the present price of concerned stock as well for comparison with the
automatic trade condition. There is a disadvantage in the first embodiment in
that, when a stock trade order is created regardless of the current price or
invested money is too much, an investment strategy may be exposed to other
investors. The second embodiment therefore makes the stock purchase order
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or selling order generated when the present price at the stock market reaches
an established price of established automatic trade condition, or makes the
stock selling order created when the present price is lower by a predetermined
percentage (by way of example, 5%) than established automatic selling price,
or makes the stock purchase order created when the current price is higher by
a predetermined percentage (by way of example, 4%) than established
automatic purchase price.
The second embodiment can be embodied by additionally providing at
the automatic trade condition establishment column of Figure 4 an
establishment column for limiting a generated period of time of the trade
order, and by comparing the current price with trade order generation time
condition established at steps 308 and 310 in Figure 3. Under these
circumstances, if the time condition is not met, steps 308 and 310 should be
continuously checked until the time condition is satisfied without creating an
error 312. The time condition comparison means according to the second
embodiment may be utilized by a known art to integrate a trade order control
module 14 and a trade condition control module 16 in Figure 2.
Now, a third embodiment of the present invention will be described
with reference to Figures 5, 6 and 7. At though the first and second
embodiments is characterized in that either the purchase order or selling
order is automatically created according to established automatic trade
condition, the third embodiment of the present invention is characterized in
that both the purchase order and selling order are simultaneously generated
according to the established automatic trade conditions as described later.
As illustrated in Figure 5, a system is activated, step 500, according to
the third embodiment to set up an automatic trade condition, step 502.
The automatic trade condition may be established by providing an
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interface to a user as exemplified in Figure 6. Remaining portions except the
automatic trade condition set-up unit in Figure 6 are the same as those
indicated in reference numerals 401 through 410 in Figure 4.
However, in the present embodiment, an example is given as
possessing 10,000 shares of DEF company and selling 100 shares of DEF
company at 10,000Won per share.
A standard quantity 602 in the automatic trade condition establishes a
standard selling and purchase at every automatic trade. Fee rates (and tax) of
securities company to be paid at the share trading are entered into a column
604, which is not essential but conducive to calculation of profits after the
stock trading. Purchase price and selling quantity of automatic trade are
established at columns 606, 608, 610 and 612. The purchase price may be
established at a predetermined lower price or at a predetermined lower rate
than the selling price at every trading.
An automatic purchase price lower by 500Won than the selling price is
established at every trading in Figure 6.
Furthermore, automatic purchase quantity may be established at a
fixed rate or at a fixed quantity in column 610. If the column 612 is blank,
the
automatic purchase order at every trading is 100 shares as the set-up
standard quantity 602. Plus(+) and minus(-) symbols may be used in column
612, and in case of using plus(+), the automatic purchase order quantity is
increased by a fixed rate or fixed quantity, and in case of using minus(-),
the
automatic purchase order quantity is decreased by a fixed rate or by fixed
quantity.
The automatic selling condition is also set up in columns 614, 616,
618 and 620 in the same manner as above. The present embodiment is
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established as automatically selling 100 shares at a price more increased or
more decreased by 1,000Won than the initial selling price at every trading. An
extra trade condition may be established at a fixed rate or at a fixed
quantity
in columns 622 and 624. The extra trade condition will be further described
later.
The user may establish a target profit or earning rate at column 626.
If the target profit rate is not set-up, the automatic trading continues
unless
stopped by the user. However, it is easy for the computer to calculate an
earning rate at every automatic trading, and it is preferable to automatically
stop the automatic trading when a certain profit rate is earned.
The user may use a trade table application button 628 to draw up an
automatic trade table as shown in Figure 7. However, the automatic trade
table can be imaginary, so that make-up of visual table is selective. In other
words, the system according to the present invention can realize the third
embodiment of the present invention just by storing a formula or logic for
drawing up the automatic trade table 700.
The automatic trade table 700 in Figure 7 is made according to the
automatic trade establishment condition in Figure 6.
The automatic trade table 700 is made such that each selling price in
selling row 714 is less by 1,000Won at each line thereof while each purchase
price at each purchase row 712 is less by 500Won than each corresponding
line of selling price.
On the automatic trade table 700, prices in the same lines as in 702
through 710 are appropriately adjusted up and down on the basis of the initial
trade price.
Unlike the example in Figure 6, in case the trade condition is
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determined at a fixed rate of percentage, purchase price or selling price of
the
trade table or order quantity may be created in decimal points. However, the
KSE has stipulated that shares should be traded on a 5OWon unit base in case
a share price is ranged between 10,000Won to 50,000Won, to thereby limit
units of trade price and quantity, and if the stipulation cannot be observed,
share price is changed to an approximate one or rounded to amend the trade
table.
In most of cases, the trade table is adjusted to an approximate price
to cater to trade regulations of each country, which can be automatically
performed by computer, each column in the trade table is allowed to be
amended in order quantity, selling price or purchase price as a user desires.
Figure 7 is an example not amended or changed. The trade table 700 is
confirmed by a trade table confirmation button 716 pressed by a user.
With reference to Figure 5, as soon as an initial selling succeeds, a
first automatic purchase order and automatic selling order are created by the
automatic trade table according to the automatic trade condition previously
set up, step 512. In the third embodiment, it is designed "to buy the same
stock at a lower price and to sell at a higher price". Accordingly, when an
initial selling order is concluded, a purchase order at a price just below the
contracted initial selling price (10,000Won) (i.e. purchase of 100 shares at a
purchase price of 9,500Won) is placed (see line 706 in Figure 7), and a
selling
order at a price just higher than the contracted selling price (i.e. selling
of
100 shares at a selling price of 11,000Won) is placed (see selling column at
line 704 in Figure 7).
These selling and purchase orders are within the account balance and
possessed number of shares, such that no errors are generated at steps 506
and 508.
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When a purchase order is contacted as ordered in a first automatic
trade order, a purchase order and a selling order approximate to the order
price contracted in the automatic trade table 700 are generated. As previously
mentioned the third embodiment is so designed as to buy "at a lower price"
than just-contracted price "and sell at a higher price", such that a second
automatic trade order is created through steps of Figure 5 (steps 514, 516,
506 and 508) where a purchase order (100 shares purchased at 8,500Won,
see line 708 in Figure 7) and a selling order (100 shares sold at 10,000Won)
are placed.
When a selling order is concluded at the second automatic trade order,
a purchase order (100 shares bought at 9,500Won) close to contracted order
price (10,000Won at the second order) and a selling order (100 shares sold at
11,000Won) are automatically generated at the third automatic order. In order
words, each automatic trade order generates a purchase order at a price just
lower than the contracted price at the automatic trade table 700 and a selling
order just higher than the contracted price.
When an automatic trade is performed according to the third
embodiment, a certain profit is created in case the share price vertically
fluctuate around a price range of the initial trade price. By way of example,
in
case a share price in Figure 7 rises from 10,000Won to 14,000Won and drops
to 10,000Won, a predetermined earning is generated. Furthermore, even in
case a share price drops from 10,000Won to 4,000Won and rises to
10,000Won, a certain profit is gained. As apparent from this, the third
embodiment may be an appropriate investment method for a stock where a
share price thereof frequently and vertically fluctuates at a certain price
range.
The extra trade condition in Figure 6 may be estabiished to increase a
selling quantity and purchase quantity in case an automatic trade is again
generated at the same price after the automatic trade is initiated, in other
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words, in case a purchase order and selling order are twice generated at the
same price according to fluctuation of the share price.
Referring to Figure 5 again, a discrimination is made as to whether a
purchase condition and a selling condition are met by comparing the
established automatic trade condition with balance of securities account and
possessed stocks, steps 506 and 508. In order to buy stocks, at least more
money should remain in the account than established purchase quantity
multiplied by established purchase price, and in order to seli, at least more
stocks are possessed than the desired selling quantity. In case only purchase
is continuously contracted by the automatic trade, possessed balance in the
securities account may be drained out, and in case only selling is
continuously
concluded, a case may occur where possessed stocks are drained out.
In case steps 506 and 508 are met, the automatic trade purchase
order and selling order are simultaneously generated, step 512, and in case
the steps 506 and 508 are not satisfied, an error occurs, and the occurrence
of error is notified to the stock investor by an appropriate method, step 510.
By way of example, the occurrence of error may be so established that
an error message is displayed on the user interface or an alarm sound may be
generated. Furthermore, a system may be so constructed as to notify to the
stock investor by way of wire, wireless or pager when an error happens. These
kinds of error notifying methods may be realized by known arts.
As mentioned above, in case steps 506 and 508 are satisfied, stock
purchase order and stock selling order are created, step 512. At this time, it
should be noted that the purchase order and selling order are generated at the
same time.
The third embodiment is quite different in this regard from the
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conventional stock investment method. In the third embodiment, the current
share price is disregarded and price change of stocks is not anticipated at
all.
According to the third embodiment, a certain quantity is purchased
when a share price drops compared with previously bought share price and
when the share price rises compared with the previously purchase share price,
a certain quantity is sold.
A discrimination is made as to whether or not a trade is contracted at
step 514. The contracted trade order may be either a selling order or a
purchase order, or neither order can be contracted. In case both orders are
not contracted, same purchase order and selling order are created on the next
day. Exceptional cases such as partial contract, a contract with a price
different from an order price and the like may occur. In case of partial
contract, whole order quantity may be considered as contracted, or a selling
order and purchase order of the same price for the stocks not contracted may
be generated.
Furthermore, in case a contract is made at a price different from the
order price, a purchase order just below a contracted price and a selling
order
just above the contracted price are created.
Whichever order is concluded, account balance and stock remainders
are revised, step 516, and if condition is met according to the automatic
trade
condition pre-set up at steps 506 and 508, a new purchase order and a new
selling order are immediately generated.
In the third embodiment, a closing price is received from the computer
system 20 or the KSE computer system 30, step 504 to use same as a
discriminating reference of purchase condition and selling condition. In case
ex-dividend or the like occurs, cases may occur where reference price is
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different from the closing price of previous day. Furthermore, many
exceptional circumstances such as reduction of capital, stock split,
consolidation in par value and the like can happen in the stock market and
when these cases happen, it is necessary to automatically stop the automatic
trade by way of system.
A fourth embodiment of the present invention is a variation of the
third embodiment and is characterized in that at least two or more than two
purchase orders and at least two or more than two selling orders are
simultaneously created. In case there occur a large volume of purchase orders
or selling orders in the stock market, trade orders in various price ranges
are
concurrently concluded to rapidly and broadly change the stock prices.
In case three selling orders and three purchase orders are set up to be
simultaneously generated in the fourth embodiment, three selling orders, each
above 10,000Won based on initial contract price of 10,000Won, (i.e., 100
shares sold, each at 11,000Won, 100 shares sold, each at 12,000Won and
100 shares sold, each at 13,000Won) and three purchase orders, each below
10,000Won of initial contract price (i.e., 100 shares bought, each at
9,500Won, 100 shares bought, each at 8,500Won and 100 shares bought,
each at 7,500Won) are concurrently created, as in Figure 7.
If any one of the six orders is contracted, balance of five orders is
immediately cancelled the moment above one contract is concluded, and as
automatic trade orders thereafter, one purchase order and one selling order
corresponding to the contract in the third embodiment are created. The fourth
embodiment is particularly useful to reserve orders before the stock market is
open and after the stock market is closed. The fourth embodiment may be
embodied by additionally providing a column for limiting the number of plural
orders in the automatic trade condition of Figure 6.
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The first, second, third and fourth embodiments according to the
present invention are embodied by the system illustrated in Figures 1 and 2.
Information received from the computer system 30 of KSE or other computer
(not shown) connected to Internet is compared with automatic trade condition
priorly set up by a user according to the trade condition control module 16 to
discriminate whether or not purchase condition and/or selling condition are/is
satisfied. As a result of the discrimination, if the condition(s) is(are) met,
a
selling order and/or purchase order are(is) placed with the trade performing
module 24 of the computer system 20 at the securities company according to
the trade order control module 14.
This kind of discrimination and trade order is repeatedly executed,
with receipt of a market information on real time from the activated start of
automatic order system such that the trade orders are placed several times in
a day. Once the trade order is placed by the trade order control module 14,
the account control module 26 discriminates whether account balance and
remaining stocks are not out of limit, and the trade order is, once placed,
transmitted to the computer system 30 of KSE by the trade performing
module 24.
The trade conclusion control module 34 at the computer system of
KSE receives the order to compare same with trade order of other securities
companies, and if an appropriate price is formed, the trade is accomplished
where the trade contract is notified to the trade performing module 24. The
trade performing module 24 again notifies the contracted price and quantity
to the account control module 26 and the trade condition control module 14,
against which the account control module 26 rectifies the balance and
remaining quantity, where the trade condition control module 14 separately
stores the actually contracted trade condition and amends the trade condition
according to the user instruction or set=up state.
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Although the present invention has been described with reference to
specific embodiments, the invention is not intended to be limited to the
embodiments disclosed, which are considered to be purely exemplary.
Although the above embodiment has described a desired purchase price,
selling price and trade quantity as automatic trade condition of stocks, other
conditions such as increase/decrease of composite share index,
increase/decrease of stock trade volume, technical index and the like may be
established as automatic trade condition.
Furthermore, although the present invention has described about
stocks, bonds, future, options, foreign current exchanges, grains, minerals,
index swaps and the like which are traded in the similar manner as stocks
may be applied.
As apparent from the foregoing, there is an advantage in the automatic
ordering method and system for trading of stocks according to the present
invention thus described in that an investor can reduce loss of time consumed
for monitoring stock market situation or for input of orders, while securities
company can decrease time and cost for inputting and managing the trade
orders.
There is another advantage in that a possibility of erroneously
inputting data necessary for stock trade orders can be fundamentally ruled
out to thereby prevent investment loss resulted from the erroneous input.
24
